Puerto Rico's governor demands nullification of Whitefish Energy's $300M power grid contract

The head of Puerto Rico's government power company says the agency will scrap a $300 million contract with Whitefish Energy Holdings once it finishes current work on Hurricane Maria recovery efforts.

Power company director Ricardo Ramos said Sunday that he's bowing to a demand by the U.S. territory's governor, Ricardo Rossello. Ramos says the cancellation will delay work by 10 to 12 weeks.

The contract for the small Montana company has come under intense scrutiny, and audits of the Whitefish contract at a local and federal level are under way.

Roughly 70 percent of the island remains without power more than a month after Hurricane Maria struck the U.S. territory on Sept. 20.

Earlier, Puerto Rico's governor demanded that the board of the island's power company cancel the $300 million contract with Whitefish Energy Holdings amid increased scrutiny of the Montana company's role in Hurricane Maria recovery efforts.

The announcement by Rossello comes as federal legislators seek to investigate the contract awarded to the small company from Interior Secretary Ryan Zinke's hometown.

"There cannot be any kind of distraction that alters the commitment to restore electrical power as soon as possible in Puerto Rico," Rossello said, adding that nearly $8 million has been paid to Whitefish so far.

Whitefish spokesman Chris Chiames told The Associated Press that the company would soon issue comment. Power company spokesman Carlos Monroig did not return messages for comment.

Rossello said he has requested that crews from New York and Florida come help restore power in Puerto Rico as he criticized the U.S. Army Corps of Engineers for not meeting its goals. The agency could not be immediately reached for comment.